Yes, a NetCredit personal loan does affect your credit score in the long run, but it doesn’t have any impact during the application process, as NetCredit only does a soft pull of applicants’ credit. Once you get the loan, your increased debt level and account diversity will impact your score, as will your loan payments. In particular, whether or not you pay on time will have a huge impact on how your score changes.
How a NetCredit Personal Loan Affects Your Credit Score
Increased debt level: Taking out a NetCredit personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.
Account diversity: One positive way that getting a NetCredit personal loan can impact your score right away is by adding more diversity to the types of accounts you have open. Your “credit mix” is one of the components of your credit score, and the more types of accounts you have, the better – as long as you handle them responsibly.
Payments: The biggest factor in how a NetCredit personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result. If you pay late or fail to make payments altogether, you can expect your credit score to drop.
The bottom line is that while a NetCredit personal loan does affect your credit score, most of the way that your score changes depends on how responsible you are with the loan. If you’d like to estimate how certain actions might affect your credit score, you can use WalletHub’s free credit score simulator.
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